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Thursday, July 31, 2008

Basic Tax Tips Anyone Can Follow: Save Money, Pay Less Tax

Tax Tips For Single People

If there are going to be tax cuts in the next financial year, make sure you prepay membership fees for unions & professional associations and make any charitable donations before the end of this financial year (June 30)

If you have a few $1000 in spare cash, don’t leave it in your transaction bank account earning no interest, instead put it in an Online Savings Account with a High Interest Rate and No Bank feesIf you’re single and going to earn more than $100,000/year (from July 2008-June 2009) make sure you take out a basic private health insurance plan (with an Excess of $500 or less) or your Medicare levy will rise from 1.5% to 2.5%.

If you earn less than $28,980 … and contribute $1000 cash to your super fund … than at the end of the year the ATO will deposit an extra $1500 in your super account, more details at Turn $1000 into $2500 with Super Co Contributions

If you were lucky enough to sell assets like shares and made a large profit you’ll have a lot of potential capital gains. Check out your list of assets and see if there are any that have made losses and you were going to sell them soon anyway.

If you do sell them this generates a capital loss you can claim against capital gains from the assets which made a profit when sold.

This also frees up some money to invest in assets that have a hope of rising in value.